Stock market today: S&P 500 drops for fifth day as focus shifts to Powell’s speech
Investing.com - Jefferies raised its price target on Ameren Corp . (NYSE:AEE) to $121.00 from $115.00 on Tuesday, while maintaining a Buy rating on the utility company. The utility giant, with a market capitalization of $27.07 billion, has demonstrated strong dividend reliability, maintaining payments for 28 consecutive years.
The price target increase follows what Jefferies described as "solid 2Q25 results" for Ameren, driven primarily by strong performance in its Missouri operations.
Jefferies raised its fiscal year 2025 earnings per share estimate to $5.01 from $4.95, placing it in the top half of the company’s guidance range. The firm also increased its FY26-29 EPS estimates by 1.2% to 2.0% per year, reflecting solid Missouri returns and higher Illinois return on equity.
The updated estimates imply an 8.2% EPS compound annual growth rate, above the 7.6% consensus and exceeding Ameren’s own 6-8% guidance range.
Jefferies noted that Ameren is trading at only a 3.6% premium to Jefferies’ FY27 estimates and a 6.4% premium to consensus estimates, suggesting potential for the stock to return to a double-digit premium.
In other recent news, Ameren Corporation reported robust financial results for the second quarter of 2025. The company achieved earnings per share of $1.01, surpassing the forecast of $0.99, and reported revenue of $2.22 billion, significantly exceeding expectations of $1.8 billion. Following these results, BMO Capital raised its price target for Ameren to $110 from $108, maintaining an Outperform rating. Similarly, Mizuho (NYSE:MFG) increased its price target to $108 from $105, also keeping an Outperform rating, citing a strong outlook. Ameren management reaffirmed its 2025 earnings per share guidance of $4.85-$5.05, with expectations trending toward the upper half of that range. The company reiterated a 6%-8% EPS compound annual growth rate for 2025-2029, anticipating results toward the high end in the mid-to-late years. Additionally, Ameren declared a quarterly cash dividend of 71 cents per share, payable on September 30, 2025. Ameren Missouri, a subsidiary, also declared regular quarterly cash dividends on all classes of its preferred stock, payable on November 15, 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.